insurance cancelaltion before ploicy starts

kilop999

edited by someone

dunstonh

I will be cancelling before the policy even starts and know I am entitled to the full deposit back.

Correct unless there is an investment element or if the "retailer" has a cancellation charge.

The insurers will no doubt try it on,

why?

what do I need to say to them on the phone in order for them to not do so i.e. financial ombudsman.

What insurance product is it? You could just wait for the cancellation rights to arrive and follow those.

I know they can’t do it but need to know roughly what line I should be going to down to let them know I aint gonna be messed around with.

If you know what they are going to do and know they cant do it then why are you asking?

kilop999

edited by someone

dunstonh

there are cancellation charges but these only apply once the policy commences, but i also know that insurers like to try it on. its motorcycle insurance.

Are you sure? Not all do. Make sure before you do it.

perhaps the distance selling regulations apply?

They don't. Financial Services has it own rules (which incorporate many of the distance selling rules) but enough differences that you cannot rely on them. The biggest difference is that they can charge you if you cancel as long as its in their published terms.

bouncydog1

You may be getting the time on risk and cancellation charges element of the policy mixed up.

Time on risk charges would only start to run once the policy incepted e.g. if you had the cover for one week, insurers would charge you a time on risk charge which you would think would be 7/365ths. It wouldn't be - it would be short period rates which might be 10% of the annual premium.

Cancellation charges are the fees that the insurer levies to clawback some of the administration charges incurred in setting up your policy - after all somebody has to set up all of your details on the system, issue a certificate and policy and it all has to be checked. These can be up to £50.

I would be very surprised if you incurred no cancellation fees at all.